BP and Equinor halt rock installation contract for US offshore wind project

Great Lakes Dredge & Dock, together with its consortium partner Van Oord, has been informed by Empire Offshore Wind, a joint venture between BP and Equinor, of the termination of the rock installation contract for the Empire Wind 2 offshore wind project which was set to commence in 2026.

In 2022, the Great Lakes-Van Oord consortium was contracted by Empire Wind to perform rock installation for the Empire Wind 1 and 2 offshore wind projects with installation windows in 2025 and 2026, respectively.

Empire Wind 1 is currently on track for rock installation in 2025, said Great Lakes.

“We look forward to the start of the Empire Wind I installation expected in 2025, continuing our relationship with Equinor and bp as a preferred supplier, and bidding on future projects. We continue to pursue additional opportunities including projects internationally for 2026 and beyond,” said Eleni Beyko, Senior Vice President of Offshore Wind at Great Lakes.

However, Empire Wind has informed the consortium that they terminated the Empire Wind 2 rock installation contract that was set to commence in 2026.

Termination of the Empire Wind 2 project initiates a contractually obligate termination fee payable to the consortium that is intended to cover lost earnings potential related to Empire Wind 2, said Great Lakes.

As reported yesterday, January 4, BP and Equinor have terminated their Offshore Wind Renewable Energy Certificate (OREC) agreement for the 1,260 MW project with the New York State.

In addition, the partners canceled contracts signed with the Dutch offshore wind foundation manufacturer Sif and Singapore-based Seatrium for the manufacturing of monopiles and the project’s offshore substation, respectively.

The State of New York has set a goal of developing 9 GW of offshore wind capacity by 2035.

“New York remains committed to meeting the State’s clean energy goals and they have taken steps forward with the accelerated solicitations for new PPAs to allow developers to adjust prices for inflation and develop more robust projects going forward. Awards for the next solicitation round are expected in February 2024,” said Beyko.